Iran says US pressures on Iran, Venezuela making oil market fragile
Iran's oil minister said on Sunday that US sanctions on
Iran and Venezuela and tensions in Libya have made the supply-demand balance in
the global oil market fragile, and warned of consequences for increasing
pressures on Tehran.
Oil prices have risen more than 30 percent this year on the
back of supply cuts led by the Organization of the Petroleum Exporting
Countries and US sanctions on oil exporters Iran and Venezuela, plus
escalating conflict in OPEC member Libya.
"Oil prices are increasing every day. That shows the market
is worried," Bijan Zanganeh was quoted as saying by Tasnim news agency.
"Venezuela is in trouble. Russia is also under sanctions.
Libya is in turmoil. Part of US oil production has stopped. These show the
supply-demand balance is very fragile," Zanganeh said.
"If they (the Americans) decide to increase pressures on
Iran, the fragility will increase in an unpredictable way," he added.
Zanganeh said one of the consequences of pressure on Iran
was a rise in fuel prices in the United States.
"Mr. Trump should choose whether to add more pressure on
Iran or keep fuel prices low at gas stations in America," Zanganeh was
quoted as saying by the oil ministry's news agency SHANA.
The US reimposed sanctions on Iran in November after
pulling out of a 2015 nuclear accord between it and six world powers. The
sanctions have already halved Iranian oil exports.
US President Donald Trump eventually aims to halt Iranian
oil exports, choking off Tehran's main source of revenue. Washington is
pressuring Iran to curtail its nuclear programme and stop backing militant
proxies across the Middle East.
OPEC and its allies meet in June to decide whether to
continue withholding supply. Though OPEC's de facto leader, Saudi Arabia, is
considered keen to keep cutting, sources within the group said it could raise
output from July if disruptions continue elsewhere.
The producer group's supply cuts have been aimed largely at
offsetting record crude production in the United States.